GameStop has just joined the NFT bandwagon, but their timing can't get any worse as the NFT market free falls.
GameStop has just announced that it's joining the blockchain with its very own NFT wallet. While cryptobros will surely celebrate this move, the rest of us are raising our eyebrows.
— GameStopNFT (@GameStopNFT) May 19, 2022
Sure, the cryptomarket is very alluring, so it's hard to fault companies for wanting a piece of the cake. However, it's very alarming that GameStop – a company that is known to have been floundering financially only until recently – would enter the market in its current state. As many who dabble in NFTs would know, we're currently in a bear season, with interest rates being high and trade activity being very slow and in low volumes recently. In fact, Kotaku had a fantastic article released just week documenting the cryptocurrency market crash that happened – and continues to happen today.
We're appreciative of companies who aren't scared to take risks in the name of innovation, and up to today, there's still a lot of potential for Web3 and cryptocurrency applications. However, GameStop couldn't have selected a much worse time to announce its entry into cryptocurrency than today. Still, this kind of behavior is what's needed by companies like GameStop to keep themselves afloat and relevant. The company has already brushed with death only a couple of years ago, not until wallstreetbets bros pumped the life back into it. Now, it's trying to keep itself afloat by its own efforts – and hopefully, this move ultimately helps the company survive in the long term.
But oh boy, we're sure that GameStop will have a very rough year ahead.